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June 20, 2017

Sales tax holiday could happen this summer, Baker says

Governor Charlie Baker said he is open to the idea of a sales tax holiday this summer.

A year after lawmakers decided that the state could not afford an August sales tax holiday, the topic is back before a key committee on Tuesday and Gov. Charlie Baker said he's keen to hear the testimony offered.

The Joint Committee on Revenue will hear testimony on bills dealing with the state's sales and excises, including bipartisan proposals from House lawmakers to revive the August weekend reprieve for consumers from the state's 6.25 percent sales tax.

Baker, despite facing a similar situation to last year when tax collections were badly trailing expectations, said he's open to a sales tax holiday this summer.

"I think we should take a look at it and consider doing it. I know there's a hearing on it tomorrow. It's very tough to be in retail these days and I think it's something that's worth consideration," Baker told reporters.

The sales tax holiday had been something of an August tradition since 2004, an effort to spur consumer spending during what is generally a slow time of year for retailers. The Retailers Association of Massachusetts is pushing lawmakers to reinstate the holiday this summer, arguing that the state's retailers can't afford to go another year without the ability to entice customers with a tax break.

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